Hungary, a land-locked country of 9.7 million people nestled between Austria and Romania, is not a country which receives a huge amount of global attention. So here is an article for you Hungary, home to the beautiful historical city of Budapest and the inventor of the Rubik’s cube.
In December 2019, the official unemployment rate in Hungary was 3.4%, a ten-year low. This figure, combined with 5% economic growth in the third quarter of 2019, demonstrates a strong Hungarian economy which can stride optimistically into this new decade.
source: tradingeconomics.com
The recent economic growth in Hungary is largely attributed to increasing levels of government spending throughout the economy as well as a strong net-trade balance. Hungarian exports, 79% of which go to the EU, are mainly comprised of heavy machinery, equipment for transport, and consumer goods. It is these thriving industries which provide a variety of employment opportunities for the Hungarian workforce.
THINK LIKE AN ECONOMIST!
Q1. What is meant by the term unemployment?
Q2. Explain one impact of low unemployment on the Hungarian economy.
Q3. With reference to the information above, analyse the benefits of persistent economic growth to a country like Hungary.
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